AN APPRAISAL OF THE ROLE OF PUBLIC RELATIONS IN CRISIS MANAGEMENT
CHAPTER ONE INTRODUCTION1.1 Background of the Study:
Public relations play a vital role between an organization and its public. Its practice aims at establishing a two-way communication, seeking common ground or areas of mutual interest and establishing understanding based on truth, knowledge and full information. It isthat indispensable bridge that fosters co-operation and understanding. With increasingintensity, the civil society is rather active than passive in the affairs that concern them.Similarly, organizations are more socially responsible in their business undertaking inreference to public opinion. The reason is not far fetched. Today’s organizations, no matterhow pretentious they are, are aware that they need to build dependable relationship with their publics. However, it is obvious that no matter how hard an organization attempts toproject her image, occasions arise when crisis develops and threatens the very foundationof the organization concerned.Public relations have myriad of definitions. The British Institute of Public Relations(1994) defines it as deliberate, planned and sustained effort to establish mutualunderstanding between an organization and the public. The Mexican definition which wasas a result of International conference held in Mexico City in 1978, says, Public relations practice is the art and social science of analyzing trend, predicting their consequences,counseling organization leader, and implementing planned programmer of action whichwill serve both the organization and the public interest. Harlow(1976) defines it asdistinctive management function which helps establish and maintain mutual lines of communication, understanding, acceptance and cooperation between an organization andits public; involves themanagement of problems or issues; helps management to keep informed and responsive topublic opinions, defines and emphasizes the responsibility of management keeps abreast ofand effectively utilize change; serving as an early warning system to help anticipate trendsand uses research and ethical communication techniques as its principal tools. Indeed,Public Relations have long been discovered as not only a management function but thebasis of philosophy of management. According to Oxford Advanced Lear
ner’s Dictionary(7th edition) crisis entails a time of great danger, difficulty or confusion when problemsmust be solved or important decisions must be made. ‘CrisiS can be said to be an unsettlingsituation with disquieting disposition needing a return from the status quo. In view of thesituation in Nigeria currently, crisis can be in different forms, example political crisis,financial crisis, fuel crisis, labour crisis, civil disturbance engendered by a perceived wrongdoing by a corporate organization, management, shareholder and management related crisisand so on. These are to mention but a few instances because there are so many dimensionof crisis. Crisis can occur as a recall of an action of omission or negligence; even anatural disaster can trigger off crisis in an organization. Crisis can either be violent or non-violent in nature Solu; 1994, p. [383]. However, in as much as crisis is an inevitablesituation, there is always the need to develop pre- emptive strategic method to prevent itsoccurrence. But in case crisis occurs and poses great danger, difficulty or uncertainly, thebig questions for public relations experts or managers is: what do they do? How best dothey utilize their training and knowledge to resolve a situation that is unstable and capableof a highly undesirable outcome? A brief history is necessary because several structural changes and innovation havetaken place in the bank to make it what it is today. Union Bank is a large commercial bank,serving individuals, small and medium– sized companies, as well as large corporations andOrganizations. A brief history is necessary because several structural changes andinnovation have taken place in the bank to make it what it is today. The first branch of theUnion Bank opened for business in Lagos in 1917 and almost immediately, the Jos andPort-Harcourt branches followed. Then the bank was known as colonial Bank to reflect thesigns to time. Nigeria was under the British rule and who of course, introduced the bank.The bank opened twelve more branches in different parts of the country and later becameknown as Barclays Bank.In 1971, the shares of the bank stock were listed on the Nigerian stock Exchange. Inthe same year, 8.33
% of the bank’s shares were offered to Nigerians. The following year,the federal Government of Nigeria acquired 51.67% ownership of the bank, leavingBarclays Bank Plc of London with 40% ownership. In 1979, that 40% was sold to Nigeriaindividuals and business to comply with the recently enacted banking and investment laws.The bank changed its name to Union Bank of Nigeria Plc., to reflect its new ownershipstructure. In 1993, the federal Government of Nigeria completely divested its ownership inthe bank. Subsequently, Union Bank of Nigeria Plc. acquired the former Universal TrustBank Plc. and Broad Bank Limited. It also absorbed its former subsidiary Union MerchantBank Limited.Union bank has grown enormously since 1979.Beween 1981 and 1984, the bank madethe highest level of profits in the banking sector. While In 1986, it became the firstNigerian to hit 1 billion naira mark in the savings deposits. Its total assets which stood at 5,29.550 billion naira in 1986 has risen to about 329.6 billion naira in 2003. In July 2009, itwas rated the 556th largest bank in the whole world and the 14th largest world in Africa. As of June 2012, the bank’s asset base was estimated at US$6.784 billion (NGN:1.049 trillion).The shareholders equity at that time was estimated at US$1.22 billion (NGN:188.4billion). The bank has a branch in London which commenced operations in September1983 with five million pounds and 12 members of staff, now it has grown to more than 30million pounds with staff strength of 42.Union Bank of Nigeria Plc with its mission statement of “To be the foremost financialinstitution with the satisfied customer” is one of the largest companies listed on theNigerian Stock Exchange and ranked among the most successful in the whole of African.
1.2 Statement of the Research Problem:
There is a saying that goes thus:”Change is the only constant things in life”. In
asmuch as change is desirable, not all change brings good fortunes, some bring about positiveeffects while some simply are destructive and devastating. The problem is that with eachpassing year many organizations find themselves enveloped in crises which decelerategrowth and brings instability in the polity, unhealthy competition, destruction of life andproperty as well as loss of life. What factors could be responsible for these? Does it meanthat Public Relations departments are overtly ignored or underrated in organizations? Acorporateorganization like Union Bank Plc which has grown to such a magnitude has had its crisisperiods. Of course no business can operate in troubled waters. Therefore the question thisstudy seeks to answer is: how has Public relations expertise and experience been used toeffectively manage a crises situation in Union Bank Plc Garden Avenue Enugu.
1.3 Objective of the Study
The study had the following objectivesi. To determine the role public relations play in crises management atUnion Bank Plcii. To determine what Public relations tools were used to resolve the crisesat Union Bank Plc.iii. To ascertain how effective the Public relations tools were used inresolving the crises.
1.4 Research Questions
The study answered the following research questions.
1.What roles does public relation play in crises management at Union BankPlc?
- What Public relations tools were used to resolve the crises?3. How effective were the Public relations tool used in resolving the crises?
1.5 Hypotheses
Ho: Public relations does not plays any role in crises management atUnion Bank Plc.Hi: Public relations play a role in crises management at Union BankPlc.Ho: A good public relations unit cannot help prevent crisis in UnionBank Plc.Hi: A good public relations unit can help prevent crisis in Union BankPlc.Ho: Public relations unit can not maintain peace in Union Bank PlcHi: Public relations unit can maintain peace in Union Bank Plc.
1.6 Scope of the Study
The study is limited to Union Bank Head Quarters Enugu, Garden Avenue. Thisbranch is large and representative enough to provide all the information necessary to do justice to the study within the period.
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1.7 Significance of the Study
The study will go a long way to benefit many co-operate Organization, theacademics and Government Officials in Crisis as few work have been done on the subject.The foundation of modern society lies in its economic and industrial capacity forbusiness and governance to grow and progress. There is the over whelming need to ensurestable social, political and economic environment. This show the vital position publicrelations has come to occupy in the scheme of things. Public Relations application inadministration and Management can help in achieving the desired expectations whenproperly harnessed.In other words, business and industries will find the study important and used as itattempts to mirror the various Crisis, it also proffers solutions. The society will benefitfrom this research especially in this time of stress on the national economy and the highlevel of corruption pervading all sectors of our national life.
1.8 Operational Definition of Significant Terms
The definitions of the vital terms used in the research are given thus:
Public
: Customers and staff of Union Bank Plc. Garden Avenue Enugu from Jan. to July2014.
Public Relations:
It is the practice of managing the spread of information between the staffof Union Bank Plc. Garden Avenue and their customers.
Crisis:
Violence created by the retrenchment of Union Bank Plc. Garden Avenue Enugu in2008.
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Crisis Management:
It is the process by which Union Bank Plc. Garden Avenue Enugudeals with a major event that threatens to harm their staff and customer.
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